Why should advisors include alternative investments in their clients’ portfolios? Diversification, diversification, diversification. Like location in real estate, diversification seems to be the key factor for including alternatives in a portfolio. It’s not quite as simple as that, of course, but there is no doubt that diversification is one of the chief reasons cited for allocating a portion of a portfolio to alternative investments. What percentage of a portfolio should be allocated to alternatives, for this purpose (or any other) is another issue, and each advisor will have their own opinions. We take a look at what allocations looked like in 2021 and what they might look like going forward.
Continue reading “How do Advisers Allocate Alternative Investments for Clients?”What’s the Best Way to Finance Your Real Estate Investment?
A quick look at different types of investment loans
An investment loan refers to any kind of loan used to finance the purchase and/or renovation of an investment property. While the home one lives in may well be considered an investment, it is also a home; as such, it is not considered an investment property per se, as one has to have a roof over one’s head, whether owned or rented. Purchasing a property with the aim of leasing it or fixing it up to flip it and make a quick profit, makes it an investment property – a realistic alternative to investing one’s spare capital in stocks or bonds.
Continue reading “What’s the Best Way to Finance Your Real Estate Investment?”What Is a Blanket Loan?
Also known as a blanket mortgage, a blanket loan allows you to use one, single loan to buy several pieces of property. This eliminates the need to take out a new loan for each individual piece of property you wish to add to your real estate portfolio.
Continue reading “What Is a Blanket Loan?”How Long is a Standard Home Mortgage?
Mortgages offer many options for homeowners, with varying interest rates, amortization, fees, and monthly payment amounts. You need to find the mortgage that works best for your unique situation, whether your goal is a lower payment, lower interest rate, or paying the loan off as soon as possible.
Continue reading “How Long is a Standard Home Mortgage?”How to Build a Real Estate Portfolio
A real estate portfolio is the collection of your tangible assets or a document that comprehensively details all of your real investment assets, both past and present. Think of it as a resume for your real estate investment history. The portfolio can consist of Real Estate Investment Trusts, flipped homes, and rental properties. A portfolio isn’t a legal term, just a concept, so you can reference it as you see fit.
Continue reading “How to Build a Real Estate Portfolio”Investing in Senior Housing
As Baby Boomers approach retirement, the demand for senior housing will continue to increase. While real estate has traditionally been a solid investment, housing for retirees and senior citizens is bound to experience a rapid increase in demand. Investment property may be purchased by individuals or through groups who pool their resources. Financing for investment properties is tighter and is one of many factors to consider before pursuing an investment in senior housing properties.
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